But in the meantime you will still have great overall returns even with negative cashflow if you purchase the right duplex and account for appreciation and Principal paydown.I have never used an FHA loan, but I have heard that they are more discerning than Fannie/Freddy (F/F) on what they will lend on. 

You could deep creep that person and pay then a visit or interact with them in a different way to discern their willingness to clean it up or part with the property.

It’s called the DISCERN method.Demographic GroupIncomeSchoolsCrimeExpansion (Population & Income Growth)RentNeighborhood (indicator stores along with general research on business in target area)I think it covers everything you need to evaluate a good market for rentals.

It's called the DISCERN method.Demographic GroupIncomeSchoolsCrimeExpansion (Population & Income Growth)RentNeighborhood (indicator stores along with general research on business in target area)She wrote a great article about it here https://www.vestmap.com/discer...I think it covers everything you need to evaluate a good market for rentals.

How does one discern which foreclosures are still active and which ones have been sold?

As far as I've been able to discern in a few years of wrestling with Lenders THE paper trail, the ONLY one that makes a self employed borrow bankable is Taxable Income. 

As we developed our systems, hosted more guests, and learned more about the business, we became a bit more discerning.

If you do try the Midwest, it would be valuable to discern who is buying the SFR's in your chosen area. 

Here are some of the details that I discern would be helpful to know:- Property type is senior living center, mix of independent living homes and apartments, assisted living apartments, and care residences.

to build it in 1996, so much for being so discerning on price, and I can't recall a time being happier about where I lived!